Snapdeal Is Considering To Buy GoJavas To Regain Market Share
E-commerce Giant Snapdeal is mulling to purchase its delivery partner GoJavas.This move might help them to get back the number second position which it had lost to Amazon.This strategy is to ensure faster delivery of the products to the customers.
If the deal is finalised, GoJavas will be offering its service only to Snapdeal. Currently, it is serving Flipkart led Jabong, which has placed GoJavas on a one-month notice.
GoJavas is valued at about Rs 600 crore and Snapdeal is already a minority shareholder in the company, it has about 42 percent share in the company valued at Rs 250 crores.If it acquires GoJavas, it can become a fully owned business.
GoJavas is still struggling to raise funds and has already shut down its operation in South and West zones. If the deal goes through, it would be a Win-Win situation for both the companies.
Furthermore, Snapdeal has introduced a new policy for returning the electronic items purchased through its website. Customers now have to furnish a proof from an authorized service center to prove the item is indeed faulty.This would help the sellers to reduce the cost incurred in returning the goods.
Although this would help the vendors, the consumers will obviously not be happy and are more likely to buy at Flipkart and Amazon as they have a better return policy. Snapdeal has also agreed to share the cost involved in product turns with the sellers.
Earlier, Snapdeal had slashed the supplier’s listing fee keeping it in-line with the rivals Flipkart and Amazon.